Workplace collaboration platform Slack added 12000 net new paying organisations in the first quarter, helping to fuel revenue growth of 50 percent year on year. And with 90,000 net new companies on the platform in total including free customers, the potential for the remainder of the year looks solid.
Slack now has over 750,000 organisations on its platform of whom 122000 are paying for the service.
In a call with financial analysts, Stewart Butterfield, Chief Executive Officer, and Co-Founder at Slack said, “We believe very strongly, the impact that the global crisis will have on the way we work is of a generational magnitude that is just beginning to be felt. It’s too soon to understand the impact with any precision, but it reinforces our conviction around this business, and our long term trajectory.
“This will continue to catalyze adoption for the new category of channel-based messaging platforms we created and for which we are still the only enterprise-grade offering.”
Describing the impact of the wholesale move to WFM on Slack, Buttefield said, “We were fully remote in early March, and much of the working world followed over the next month. ”
According to the Slack CEO, the all in one shift to work from home concentrated multiple quarters of Slack adoption into a few weeks.
“10s of thousands of new organizations and millions of new users adopted Slack, most of them trying Slack for the first time, on our free plan. Existing users also began to rely on Slack more, and for paid users average time spent actively using Slack each day increased from just under 90 minutes at the end of q4 to over 120 minutes per day, at the end of q1.”
He noted that Time spent connected the Slack also increased by about nine hours to well over 10 hours per day. “You saw similar increases across all related metrics”
Meanwhile, CFO Allen Shim said “Now more than ever our customers depend on Slack to continue to push the envelope of innovation. We plan to continue to invest, as we see the current crisis accelerating digital transformation and the transition from email to channel-based messaging platforms over the medium term to long term. “